GrainCorp (GNC)

If there was a year to be a grains handler, 2011 would be one of the better ones. An above-average winter crop followed a record east coast harvest last year, which has left
GrainCorp
with nearly double the amount of grain in its extensive storage network than it usually does at this time of year. This is generating increased storage fees and work for its port business. GrainCorp has received 10.2 million tonnes of grain in its system from the current harvest, compared to 7 million tonnes last year after rain significantly delayed the harvest. The increased activity for its grains business has offset weaker earnings from its malt business. Lower beer consumption has depressed malt demand and lowered margins. GrainCorp shares have risen 28 per cent in the past 12 months, compared to a 13 per cent fall in the broader market. The company earlier this month entered the S&P-ASX 100 index.